Patents – Misues Doctrine – Multiple Licenses with Price-Fixing Provisios as Shermen Act Violation
In a suit for infringement of a moire process patent, relief was denied by the trial court partially on the ground that plaintiff had misused its patent by violating section 1 of the Sherman Act. Plaintiff had licensed two other moire finishers to use the patented process. Each license contained a proviso that plaintiff could specify the prices the licensee was to charge its customers for finishing cloth with the patented process. On appeal, held, affirmed. It is a violation of the antitrust laws for a patentee to issue more than one license containing price-fixing provisions. Newburgh Moire Co. v. Superior Moire Co., (3d Cir. 1956) 237 F. (2d) 283.